Franklin BSP Realty Trust(FBRT) - 2025 Q4 - Annual Results

Financial Performance - Reported GAAP net income of $18.4 million for Q4 2025, down from $30.2 million in Q4 2024, and $84.1 million for the full year 2025, compared to $92.4 million in 2024[2] - Diluted earnings per share (EPS) for Q4 2025 was $0.13, a decrease from $0.29 in Q4 2024, and $0.64 for the full year 2025, down from $0.82 in 2024[2] - Distributable Earnings for Q4 2025 were $17.9 million, compared to $31.2 million in Q4 2024, and $67.3 million for the full year 2025, down from $100.7 million in 2024[3] - Net income attributable to Franklin BSP Realty Trust, Inc. was $82,271,000 in 2025, down from $95,878,000 in 2024, a decrease of 14.2%[37] - GAAP net income for 2025 was $84,085,000, a decrease from $92,403,000 in 2024 and $144,509,000 in 2023[38] - Distributable Earnings for 2025 were $67,321,000, down from $100,682,000 in 2024 and $189,510,000 in 2023[38] - Distributable Earnings to Common for 2025 were $45,875,000, compared to $81,073,000 in 2024 and $169,510,000 in 2023[38] - The company reported a GAAP net income ROE of 4.6% for 2025, down from 5.6% in 2024 and 8.9% in 2023[38] - Distributable earnings ROE for 2025 was 3.4%, compared to 5.9% in 2024 and 12.1% in 2023[38] - GAAP net income per share, diluted, was $0.64 for 2025, down from $0.82 in 2024 and $1.42 in 2023[38] - Distributable earnings per share, fully converted, were $0.49 for 2025, compared to $0.92 in 2024 and $1.92 in 2023[38] Asset and Liability Management - Total assets increased to $6,057,250,000 as of December 31, 2025, compared to $6,002,386,000 in 2024, reflecting a growth of 0.9%[33] - Total liabilities increased to $4,436,025,000 in 2025 from $4,392,581,000 in 2024, an increase of 1.0%[33] - Total stockholders' equity decreased to $1,441,530,000 in 2025 from $1,512,562,000 in 2024, a decline of 4.7%[33] Income and Expenses - Net interest income decreased to $141,953,000 in 2025 from $187,605,000 in 2024, a decline of 24.3%[37] - Total income rose to $270,071,000 in 2025, up from $223,368,000 in 2024, representing an increase of 20.9%[37] - Compensation and benefits expenses were $53,739,000 in 2025, with no comparable figure in 2024, indicating new expense recognition[37] - Gain on sales, including fee-based services, increased significantly to $57,599,000 in 2025 from $13,125,000 in 2024, a growth of 338.4%[37] Dividend and Shareholder Returns - Declared a Q4 2025 common stock cash dividend of $0.355, representing an annualized yield of 10.0% on book value[6] - The Board of Directors reset the quarterly dividend to $0.20 to stabilize book value and match earnings power to distributions[8] Portfolio and Commitments - Core portfolio had a principal balance of $4.4 billion across 169 loans, with 77.5% collateralized by multifamily properties[6] - Closed $528.3 million of new loan commitments in Q4 2025 at a weighted average spread of 284 basis points[6] - Acquired NewPoint Holdings JV LLC, which originated $5.5 billion of new loan commitments under government programs post-acquisition[14] Other Financial Metrics - The allowance for credit losses was $38,302,000 as of December 31, 2025, compared to $78,083,000 in 2024, indicating a reduction of 50.9%[33] - The company recognized unrealized gains/losses on financial instruments of $4,444,000 in 2025, compared to $6,933,000 in 2024 and $7,185,000 in 2023[38] - The company incurred transaction-related and non-recurring costs associated with the acquisition of NewPoint, impacting earnings[38] - The company adjusted GAAP income for non-cash CLO amortization acceleration, which will no longer be necessary starting Q1 2024[38]